ABSTRACT
The timber and furniture industries are not dominant branches of Brazil's economy; only the pulp and paper industry and individual fiberboard-producing firms are seen as part of the relevant economic spectrum for reasons of their size and level of technological development. Despite the high growth rate of exports of wood articles there is little reason to assume that a sustained trend toward increasing the degree of processing will materialize in Para's timber and wood exports. Innovative opportunities are given in Para's timber industry at all phases of the value chain, starting with the need to secure a supply of raw materials. The institutional arrangements in the timber industry and its institutional environment are not particularly well suited to encourage the introduction and diffusion of innovations. Despite the high growth rate of exports of wood articles there is little reason to assume that a sustained trend toward increasing the degree of processing will materialize in Para's timber and wood exports.
